Central Government Withdraws Subsidy to Hybrid Vehicles
- The Union Ministry of Heavy Industries and Public Enterprises has announced the withdrawal of support to mild hybrid vehicles under FAME scheme.
- Under the plan, The Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME) subsidy was given to the vehicle owners.
- Incentives were given to pure electric, plug-in hybrid, stable hybrid and mild hybrid vehicles under the Fame India Scheme.
What is a Mild Hybrid Vehicle?
A mild hybrid vehicle contains an electric motor, which does not run the vehicle, but stores the electricity generated when brakes are applied during the driving. The energy saved through this system is stored in the battery and can be used when the car’s start-stop system requires it.
The Mild-hybrid systems are more efficient and save the fuel compared to the traditional hybrid systems, which run completely run on pure electric power, which runs only shorter distances.
FAME India Scheme
- The Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME) was launched in the year 2015. Under National Electric Mobility Mission Plan (NEMMP), It aims to encourage people to use eco-friendly vehicles across the country.
- The primary objective of the FAME scheme is to provide financial assistance and monetary incentives for adoption and the market creation of both electric technologies and hybrid and vehicles across the country.
- The Scheme supports the development of hybrid or market vehicles and creation of a manufacturing ecosystem to achieve self-sustenance in the limited period. This eco-friendly initiative by the Government is being managed by the Ministry of Heavy Industries.
- It will provide demand incentives to electric and hybrid vehicles from a two-wheeler to buses.
- National Electric Mobility Mission Plan (NEMMP) 2020: It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country.
- It has set an ambitious target of 6-7 million sales of hybrid and electric vehicles year on year from 2020 on wards.